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For the period just ended, Trek Corporation's Trailer Division reported profit of $113 million and invested capital of $540 million. Assuming an imputed interest rate
For the period just ended, Trek Corporation's Trailer Division reported profit of $113 million and invested capital of $540 million. Assuming an imputed interest rate of 15%, which of the following choices correctly denotes Trailer's return on investment (ROI) and residual income? ROI Residual Income A. 21% $32 million B. 21% $ (32 million) C. 15% $32 million D. $32 million 21% E. None of the answers is correct
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